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Dear Friends,
A bunch of people have asked me to talk about tech trends, since I have a vast history of nailing the future of technology allowing me to invest in early tech trends/companies.
I believe it is very important to have a vision of the future when investing. One of the main sectors that I focus on when investing in stocks are tech stocks.
With that being said, we have RUMORS swirling about the future of the iPhone. These rumors are keeping the CEO of Verizon and ATT up at night.
Here are a couple of things to keep in mind:
In the grand scheme of history, we are at the very beginning of the technology boom.
When you think about technology, you should always think about it with a vision of ten years from now not tomorrow. Think back to 2011, did you even have a smart phone? Were you even on social media? Did you even shop on amazon? Did you stream Netflix? Were you riding in an Uber? Were you renting an AirBnB? I think you get the point. You might be asking, why does this matter? When you invest in technology companies, you have to think about the year 2031 not 2021.
The things in this article won’t happen tomorrow, but they will happen sooner than later.
Apple Rumors:
Industry analyst Ming-Chi Kuo told investors last week that Apple's next iPhone will be able to tap into the signals of low-Earth-orbit satellites. Apple's upcoming iphone 13 or 14 could be able to use satellite signals to send text messages in areas without cellular coverage, but at first, those messages will reportedly be limited to emergencies only.
This is HUGE, and it has a major impact on your phone bill which I will discuss below.
*Side note: After reading this newsletter, you might realize why President Obama and President Trump were such big advocates for Space Force to protect our satellites.)*
What is a Low Earth Orbit Satellite?
A low earth orbit satellite is literally how it sounds, a satellite that orbits earth at a way closer distance than normal satellites.
LEO satellites are commonly used for communications, military reconnaissance, spying and other imaging applications. The LEO has the obvious benefit of making imaging and communication a lot easier since it is closer to earth. They are also cheaper than the normal satellites due to less Rocket Power.
Elon Musk and StarLink
If this sounds familiar, it is because Elon Musk founded a company named Starlink in 2015. Starlink is the name of a satellite network that SpaceX is developing to provide low-cost internet to remote and rural locations using LEOs. Elon Musk has filed to launch around 4,000 LEO satellites into space.
"We're really talking about something which is, in the long term, like rebuilding the internet in space," says Elon Musk.
(Shoutout to my friend Ryan Brown, who spends a lot of time lobbying for internet in rural areas.)
Phone Bill and Apple?
Bloomberg has reported that this service will primarily be a texting-via-satellite tool. You'll be able to send SOS messages to emergency services or an emergency contact via the Messages app and the texts will be limited to a shorter length.
You'll supposedly also be able to report a crisis like a plane crash or a sinking boat, and the phone will prompt you for details.
You might also have to walk in a certain direction as prompted by your phone to actually connect to a satellite, and the connection might not be instantaneous.
These services listed above are just for the upcoming Iphone 13 or 14.
You still might be asking yourself, why the heck does this matter for me, my stock portfolio, and my phone bill?
Think about the year 2025-2031, when Apple has mastered the launch of these LEOs, and your phone is working 120% better WITHOUT THE USE of cell phone networks.
You are essentially removing Verizon, ATT.
You wouldn’t have a need to get your phone bill through them, and you would have a one-stop shop at Apple.
The rumored plan for Apple in the next decade is to offer monthly phone bills at a price of $12.99-$15.99.
There is an estimated 1 Billion people in the world with iPhones, so Apple adding 1 billion people at $15.99 a month to their already amazing balance sheet is mind blowing.
Verizon and ATT are great companies, and the people that I know who work there are very smart people. They will figure out ways to innovate their business, but the CEOs of these two companies are losing sleep at night over the future possibilities.
Stay Hungry, Stay Long
Matt Allen